40% Of Millennials Think They Won't Receive ANY Social Security

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00:00 SS - Run Out Of Money?
00:52 How It's Funded
02:02 Running Out?
03:39 Increasing Age
04:32 Rework Formula
05:08 Increasing Taxes
05:58 Investment
07:17 Individualization
08:53 Promotion of Literacy
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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27 июн 2024

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Комментарии : 300

@jackwpetrov 2 месяца назад

I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!

@MeltingRubberZ28 2 месяца назад

Exactly why I plan to collect SS the moment I can. Even if I don't need it, at least my kids can enjoy it.

@stevenorris1 2 месяца назад

I'm sorry about your brothers. Waiting for higher SS payouts can indeed feel risky. that's why it's important to consider planning for retirement early. Have you thought about working with a financial advisor? In my opinion They can help make your money work better for you in retirement and plan for unexpected expenses. It might give you more peace of mind and help you enjoy your retirement more. Best wishes!

@sophialharper 2 месяца назад

@@eabhaconnor It's great to hear you're also working with her. My brother in the U.S. suggested her to me, and she's excellent at her job. Thanks to her, I can travel the world with the profits she helps me make🤭

@lauraallisonn 2 месяца назад

@@eabhaconnor I'm glad you found the right person. Retirement gives us more time for things we love. Time is valuable, so do what makes you happy.

@brianmorg 2 месяца назад

The age-old debate…take the minute you can or wait until 70. I have seen so many arguments supporting both that it’s mind-numbing. I think the right answer is to do what you’re comfortable with. If you’re happy with the decision, it was the right one.

@rickwilliams9001 2 месяца назад

I’ve heard this consistently for the last 40 years or so. Me in 1987: “I don’t expect to collect Social Security.”

@snakeonia7542 2 месяца назад

Yup. Sacred cow they use as a political tool to bundle with siphon money off to all kinds of projects. Cant wait for the next reform bill.

@johnurban7333 2 месяца назад

30 years ago I was told by the old timers that I would never see Social Security. I still hear it now only except by the young people. One good thing was I did save other ways but I still need it to survive

@TheThreatenedSwan 2 месяца назад

But 30 years gains were still being made on phenotypic intelligence and we didn't have the same social capital/other demographic and cultural-political problems as today. For myself, 40 years is a long time for these institutions to promise to do the same thing they do today especially when the people making up those institutions will change composition multiple times

@user-up6qp9fv9w 2 месяца назад

I was told in 1974 on my very first job when I recieved my first pay check my boss told me social security would be gone when I retire. It is still here, the government has known for more then fifty years there is a problem they will wait untill the last minute to do something.

@JunkSock 2 месяца назад

@@TheThreatenedSwangood take. All bets are off as to what the United States looks like in forty years

@EricMoore790 2 месяца назад

That's why you have to be proactive and save and invest. The future is scary.

@snakeonia7542 2 месяца назад

Was the past scary as well?

@strenfoo7396 2 месяца назад

I'm gen X and I've heard so many younger folks say "I won't get any social security at all" which is just silly and shows they clearly don't understand how it's funded in the first place. I think congress will wait to the very last hour and pass something that "fixes" it just in time. I think the most likely "fix" will be to increase the wage cap (either by just straight up increasing the limit, or by reintroducing the tax for people making a lot more than the current limit). I doubt they will reduce the benefits, or just ignore the problem altogether, because old people vote a lot and politicians know that. I also doubt they will raise the retirement age because so many retirees are forced into retirement and basically not able to keep working. Are politicians honestly going to expect trades people to work until 70, years past when their body can no longer do the job? Quite frankly, this is a very easy problem to solve. Just increase the wage cap or remove it altogether. I say this as someone who makes more than the current wage cap and thus doing this would negatively impact me. I still think it's the easiest solution. That said, our retirement plan doesn't include any SS. While I of course think we'll get at least something, we're assuming we have to 100% fund our retirement. Anything we get will just be gravy and make our retirement that much easier.

@thetapheonix 2 месяца назад

Yes yes we will all get social security. What is not promised is that you will be able to buy anything with it or that it won’t be cut. So spare me your gaslighting. It’s a Ponzi scheme.

@mikezerker6925 2 месяца назад

You’re quite optimistic… SS is nearly bankrupt as it is, thanks to politicians “borrowing” (with no intention of payback) from it to pay down the INTEREST on the national debt which just keeps rising… absolutely unsustainable!

@SandfordSmythe 2 месяца назад

By making the affluent get less benefits may be the answer, but it turns SS into an income redistribution program.

@Zombiebeast1995 2 месяца назад

Even if they increase the cap, they will still have to pay the benefits to the people that pay in, including over the current cap amounts. The way to fix it is to say everyone born after 1989, “sorry guys, we messed up. We will fix it by never taking a dime from you again, but you get no benefits.” I was born in 1995 and I would agree to do this. They misuse the money at a criminal level. The rough average people get is $1,800/month… if this was invested properly that average should be closer to $18,000/month. It is crazy how they steal our money like that.

@SandfordSmythe 2 месяца назад

@@Zombiebeast1995 What the plan is that more "bend points" will be put into the benefits so they will not get the full amount. The difference stays in the fund.

@Fishfood007 2 месяца назад

At 70 my dad could still out work me (I’m 33 at that time) he did not make it too 72 cause of cancer.

@Idaho-Idaho 2 месяца назад

Very comprehensive discussion. Looking back at the initial development of the SS program: life expectancy was such that many workers would never reach age 65. That meant the system would not have to pay out for most. Roll forward to 2024 and workers are living into their 80's and 90's. Longer living and less workers paying into the system (ratio to workers and retires) means that the system is unsustainable in its current form. I began planing for retirement at age 29 when I first had access to a 401K. At no point did I ever factor in SS into my retirement income. Retired now with multiple sources of income none of which comes from SS. Someday I will apply, when I'm old enough.

@free-qe6wx 2 месяца назад

They attempted to correct this in the 1983 reform which was based on the 1982 projections, and what ended up happening is they far overestimated the life expectancy. At no point since 1982 has actual life expectancy surpassed the 1982 projection curve on which the 1983 reform was based. According to those 1982 projections, we should currently be at 84 years of life expectancy. The actual today is 76 years. It peaked at 79 in 2014 and has been flat to down ever since. Put simply, we are living much less than previously thought.

@dig494 2 месяца назад

@@free-qe6wx This is truth. We are not living longer and most jobs/careers in the USA are very hard to do when you are in your 60's. Even the big money managers, etc. Stress will kill you as fast as back breaking physical work. I am a retired civil engineer. Quit working at 56 just to prolong my life.....

@free-qe6wx 2 месяца назад

@@dig494 They are attempting to gas light people into thinking they are magically living longer, healthier lives to cheat them out of even more SS benefits. Its sick.

@SandfordSmythe 2 месяца назад

The life expectancy was a little more than 65 yrs for workers.

@aftp4i94 2 месяца назад

As an Aussie, I thought I would chip in to explain our superannuation and pension systems. The federal government provided aged pension is paid (once you reach age 67) out of the annual government budget. There isn't a specific tax like in the US. The aged pension is income and asset tested (the home you live in isn't included in the asset test). Earn over a certain amount or have assets over a certain amount, and the amount of pension is progressively reduced until it stops above a certain threshold. Back in the 1980s and 1990s, it was recognised that there would be a massive increase in pension payments as the baby boomers hit retirement. The then government set up the superannuation system where employers were required to put a percentage of the employee's wage into their nominated superannuation account, which the employee could also contribute money to as well. The government was unusually clever in that they got employers, employees, and the unions to agree that the employer contributions would come at the cost of lower pay rises (at least initially). The superannuation accounts have some tax benefits that make it worthwhile to lock up the money until retirement. Right now the compulsory employer contribution rate is 11% rising to 12% next year. The total amount in superannuation savings is over $3.7 trillion AUD or abot 150% of GDP. Most working class people will enter retirement with a combination of money from superannuation and government pension. Wealthier and/or financially savvy people will save enough in their superannuation to generate a retirement income over the aged pension income cut off.

@barnabusdoyle4930 2 месяца назад

They will push back the day you can start collecting SS, but that program will never go away. The number of moneyless elderly people that would create would be insane. 90% of seniors have SS as their only source of income. They are also the largest voting block in the country by far.

@rudyardganuelas6254 2 месяца назад

Evidently seniors were wasting their money on avocado toast and soy lattes to post on instagram back in the 70’s

@JunkSock 2 месяца назад

Democracy was two old people and a child deciding what to eat the whole time 🫨

@barnabusdoyle4930 2 месяца назад

@@JunkSock I always thought democracy was 4 wolves and 2 sheep voting on what’s for dinner

@marakima 2 месяца назад

actually it's 40% that only rely on SS

@jefferya.meixner8540 2 месяца назад

When I hear people say they don't think social security is gonna be there when they retire.I worry that politicians hear that and think we can still take their $ and then not pay them back in retirement.

@ld5714 2 месяца назад

Good discussion Erin. I totally agree, we are woefully deficient and short on financial literacy. We have kids coming out of HS that can barely read, can't balance a check book (on paper or via computer) and have no concept of how finances or the world around them works. It should begin in elementary school and can easily be incorporated into the daily lessons and would be far more beneficial to them individually and society as a whole, than the deficient teachings dished out to them today. Larry, Central Valley, Ca.

@darkminatozaki 2 месяца назад

Talking to my fiance about this, that we need to save and invest early and not rely to any of this.

@psychologie1054 2 месяца назад

The future of investing doesn't look too bright either though.

@robloxvids2233 2 месяца назад

2:34 reduced TO 77% not "by" 77%

@JohnSmith-gz5pm Месяц назад

Yes! Her math and wording were off.

@andysams6690 2 месяца назад

Heck. Nearly half of younger Boomers and GenX felt the same way…

@stewdogg42 2 месяца назад

Very educational. Thank you.

@mitchbandalan9450 2 месяца назад

Remove the income cap... done.

@prof.stacythemoneyteacher 2 месяца назад

Good information, information that may help calm some of the fear.

@milkncookie 2 месяца назад

Whether you think you do or do not, make sure you dont have to rely on it to retire.

@rdgale2000 2 месяца назад

I think they should remove the cap on the salary that is subject to Social Security, but also reduce the tax rates. I feel the tax rate is what hurts a lot of self-employed and family type business. I like what you said about the Australian system, but I wonder how you would transition from what we currently have to something like that. As always a great video. Keep up the good work.

@michaelbroadwell1264 2 месяца назад

Very informative!

@IamAlan867 2 месяца назад

Can we stop referring to taxes as revenue and refer to it as tax burden on the working class?

@dougbaron7853 2 месяца назад

I always learn something new from your videos. Well done Erin!

@TerryMaddox46217 2 месяца назад

Most Baby Boomers never expected to receive Social Security. One of the positive outcomes was that we planned for a retirement without it, but will benefit from it still being there. Recognition to Bob Dole for being the last politician to have enough courage to make structural improvements to the program.

@kirklandphil 2 месяца назад

Excellent information Erin.

@victorbaird8220 2 месяца назад

Thanks for the good videos 😊

@kennethpreston9813 Месяц назад

I’m not counting on social security at all, if I get anything it will be a nice surprise. I think we will see some sort of fraction of the total benefit amount that will be paid out to help improve SS solvency. I don’t know if existing SS beneficiaries will be grandfathered in at 100% of total benefits and those progressively further away from retirement will bear the largest cut to benefits. It’s impossible to see how all this will play out. Many people depend on SS so I hope the system can be fixed without hurting a lot of retirees

@bryanparry4503 2 месяца назад

The Australian system as you described it just sounds exactly like our combination of SS, IRA, and 401(k).

@mark.harvey 2 месяца назад

Yup anytime these conversations come up I point people towards Super. I don't live there but what I hear, it sounds well set up.

@edwardstewart9085 2 месяца назад

Bottom line....if you don't start saving earlly...you may have a very rough retirement.

@priscilla7538 2 месяца назад

My economics professor in the early eighties told us we contribute to social security to keep our elders from starvation, but we should expect to receive nothing but to know we did the right thing. I did not personally act on this knowledge soon enough, but it has haunted me. And yes, that is me with my kids encouraging them to start earlier. POI is a thing. Learn from my mistakes. Expect nothing. Anything you may receive is a complete bonus.

@educatedwanderer9293 2 месяца назад

I am a Gen X and I've been assuming SS will not be there for my wife and I and have saved and invested with that in mind. I also assume the same for my workplace pension which I am supposedly going to get.

@knottybeachbunny2145 2 месяца назад

This is your best video yet. Thanks.

@NEWHAMPSHIREGUY 2 месяца назад

I believe the issue will be resolved. In 1983, they were 3 months from insolvency of SS before they addressed it. A 1% increase from 6.2% to 7.2% on employer /employee benefits "fixes" SS for the next 75 years. That in conjunction with other moves could get us to 100 years. a permanent fix beyond this is hard as no one can see 100 years out. Although not against removing the tax cap, I don't believe there are enough "rich people' over 168k to make the difference and solve the issue alone. I am generally against raising taxes but 1% seems a reasonable change to basically resolve the issue for 75 -100 years.. That means if you are 10 years old today your covered until age 85 - which is average life expectancy today.

@bryanwhitton1784 2 месяца назад

Exactly! The solution is easy from a financial perspective but almost impossible from a political perspective.

@nicholasgutierrez9940 2 месяца назад

1% more is basically forcing people to save at that point honestly. You get that back in the future anyhow.

@ItsEricAZ 2 месяца назад

I agree economics needs to be taught in school and even simple concepts on saving could be used for math problems in the 3rd to 6th grades (If you saved half of your allowance what would it equal after 3 months, 5 months...) and a full class in the 7th or 8th grades. Sadly, school education can't teach them basic reading & athematic so I'm doubtful they can teach even a basic Econ 101.

@red5811 2 месяца назад

I was in the work force for 40 years and Social Security was always an issue. In my mind, one quick fix to Social Security would be to remove the income cap and continue to tax, but perhaps at a reduced rate.

@johnl9135 2 месяца назад

I don't blame them, I'm 54 and I even feel that I'm not going to get it when I reach my retirement age.

@PaulGosselinsr 2 месяца назад

50 years in the workforce had me paying SS on 100% of my earnings. I can see a need for a cap on the earnings, do to employer having to match but I think the cap is waaaaay too low. It should be at least $250k

@bcase5328 2 месяца назад

Change it to no cap on individual's contribution; tax all income sources like it is earned income (allow ROTH IRAs and the like post tax/pre-payment removals).

@philipstory3397 2 месяца назад

Stop making people who earn more pay more. It is unfairness to the highest degree. People who pay with no cap will never get back what they pay in.

@shawnbrennan7526 2 месяца назад

But are you okay with those earners also getting larger payouts?

@bryanwhitton1784 2 месяца назад

@@shawnbrennan7526 With additional bend points, yes.

@jceddy1 2 месяца назад

The main solution, not mentioned here, is how can we make the Government more accountability for the stewardship of our money! Increase Age --> How can we give the Government less accountability. Rework Formula --> How can the Government take more from productive individuals. Increasing Taxes --> How can we give the Government more money to squander Social Security was underfunded by $20B last year. Our Government just signed a $95B spending bill for Ukraine, Israel, Taiwan. Social Security would NOT be at risk if we took 1/3 of the money we fund foreign wars with and actually paid our at home obligations. Everyone SHOULD have the same answer and demand here from our Government. This is not political, but simply a mater of practicality and order of priority and obligation.

@ItsEricAZ 2 месяца назад

The only reason Congress got around to fixing Social Security in 1983 was due to its impending collapse in a few months. I doubt Congress will do better this time around and will only fix it at the last minute again in 2032 or so.

@ItsEricAZ 2 месяца назад

en.wikipedia.org/wiki/History_of_Social_Security_in_the_United_States#1983_Amendments

@MWILSON7 2 месяца назад

Funny, my generation said the exact same with in the 80s and 90s

@mogamethanu 2 месяца назад

I’m not the most sophisticated, and maybe I’m naive, but I’d prefer they just put that tax percentage in my personal retirement account

@ganthc 2 месяца назад

I think any SS reform has to untether the surplus funds from investing in Treasuries. It only causes slow growth in investment and deficit spending. As far as what those reforms are, I think it has to be a mix of the ones listed. We should raise the cap (tie it to inflation) or just remove it. This will help with funding in the near term. But it can’t be the only choice, because our population is shrinking, which means the workforce that supplies funds for the Gen Z elderly will run into issues. So raising the retirement age could help, but slowly, and mainly for the early retirement. So, early retirement could start at 65, full at 67, and max at 70. We’d need exceptions for hard labor professionals on the early part. Doing all three should keep SS going for another 40-50 years, unless our population really shrinks.

@shawnbrennan7526 2 месяца назад

I’m not sure it is correct to use the 3-legged stool analogy. In the 1930s, SS was essentially set up as “life insurance”: if you live too long, payments from SS will cover your living expenses. Retirement just wasn’t a thing back then; you worked and then you died. Plus, SS was also helping those who didn’t have pensions, like farmers. somewhere along the line people started thinking about SS as their retirement plan. Not a good idea, but here we are.

@lovethomassowell 2 месяца назад

One solution that other finance geeks have pointed to is to tie the annual SS COLA adjustment to the pre-1980's inflation index that was used for SS COLA adjustments. They point out that the current COLA increases are high and that even a modest reduction would quickly result in a SS surplus.

@bryanwhitton1784 2 месяца назад

The problem with that is that the COLA increases do not take into account the added cost of medical expenses. So as medical costs go up say 10% a year your COLA only goes up 2.3%. It doesn't take many years before the recipient is broke.

@ICantSpellDawg 2 месяца назад

The federal government should start taxing state lotto schemes to offset the deficit.

@johnurban7333 2 месяца назад

Great,great video. You are wise beyond your years. Your presentation is so well thought out and delivered perfectly. I totally agree that people should be taught how to do finances and how to invest. People go right into spending and getting into debt without thinking of the consequences of the future. Your videos should be a requirement for everyone to watch. Thanks for all you do. These videos are an important service to help people. I look forward to your next topic.

@ErinTalksMoney 2 месяца назад

Thank you John! 😊

@covertchannel 2 месяца назад

Erin, you have such a wonderful speaking ability. You speak eloquently and I have never heard you use fillers like “um, you know?, or uh.” Your videos are always relevant and informative. Keep up the great work!

@bradleymaravalli2851 2 месяца назад

Thank you for giving several viewpoints on this matter and not making the video overtly political.

@MeltingRubberZ28 2 месяца назад

35YO millenial here. Then will figure a way out to ensure those that planned/lived a modest lifestyle and therefore have a funded 401k/retirement will not get any of their money they are owed in the form of SS. Whether its raising retirement age to an unreasonable level, or making it that you qualify depending on net worth, or something to that effect - they will figure a way to screw us.

@funguy1086 2 месяца назад

That would suck.

@MeltingRubberZ28 2 месяца назад

@funguy1086 likely going to happen bud. Plan for none. Or spend everything you have now and enjoy my SS contributions as well.

@bvoyelr 2 месяца назад

38 year old here: you young whippersnappers always have such a grim outlook on things. If you've lived as long as I have, you'd know that life isn't ever as great -- or as doom-and-gloom -- as the pop culture says it will be. But in all seriousness, regardless of what the future holds, *plan for social security to give you nothing*. If you have no expectations, you cannot be disappointed. Worst case scenario, you get exactly what you expected -- anything more is a happy accident that lets you have a little more fun in retirement.

@MeltingRubberZ28 2 месяца назад

@bvoyelr I am disappointed though. What I pay in SS every month would pay for the mortgage on another rental property. I'd take another rental over SS.

@splitzgymnastics2009 2 месяца назад

Welcome to the Republican Party!

@Travis_On_Trauma 2 месяца назад

I’ve heard this about early 2000s. It’s been said for over 20 years. It’s true in some perspective, however we are finding out that you will have to work in yours 70s to get that full benefit. No thanks! I’ll take it early as possible.

@Prime99 Месяц назад

If I could take action today... I like the idea of investing part of the trust at least enough to offset inflation. I would raise the income limit to $1,000,000 with continued indexing for inflation. And after the 15% bracket I would add another 1% bracket to target incomes between $200,000 and $1,000,000 in the AIMI formula. I also would up the full retirement age again (based on US longevity maybe to 70) to a certain point in time where those of a certain age are grandfathered. Then I would raise the tax by a percent or more to eliminate any shortfalls.

@MikeSTGL 2 месяца назад

When I started my working career 32 years ago , I thought SS would be little when I retire. So we saved in our retirement as such ,will not need SS. Everyone should do the same . SS will not go way , will be changes in the future generations.

@free-qe6wx 2 месяца назад

@3:55 I don't agree with Erin's assessment on this at all. In 1983 SS did raise the retirement age by two years to 67 (under later proven false pretenses), but they did not increase the minimum number of years you had to work to earn a SS benefit. Gen Z and especially Millennials delayed entering the workforce vs any previous generation by a lot and that is just looking at any employment. Full time employment was delayed even more vs any previous generation. This is why the insolvency date has been pushed to the left so much in the last 25 years, and it has nothing do with people living longer than previously thought because that in fact is false. At no point since 1982 has the actual life expectancy surpassed the projected life expectancy under which the 1983 reform to raise the retirement age was based. Anyway, being asked to retire later is not the same thing as asking people to work more years. If you delayed entering the workforce, you should be delayed in collecting SS benefits. I don't think they should raise the retirement age, because we are living far less than what was projected in the 1982 study (the basis for the 1983 reform). I think they should raise the minimum number of years to qualify for a benefit from 10 years to 20 years and implement a minimum wait time before you can collect benefits after you hit 20 working years of, say, 10 more years. Also, everyone should have to earn their own benefit, i.e., no more deceased spouse transfer of benefits, uprate of benefits, etc.

@nicolasrumboll608 2 месяца назад

Hold on a minute there. If you work less than 35 years you lose some of the benefits and if you work part time, the same loss will apply. Social security takes the best 35 years to work out your benefit so your argument and blame towards these seeming slackers is already baked into the system.

@free-qe6wx 2 месяца назад

@@nicolasrumboll608 If you work less than 35 years, you never earned the benefits in the first place. You are not "losing" benefits. They were never yours to begin with. Because Gen Z and especially Millennials have delayed entering the workforce by so many years and in such large numbers, it has caused the SS trust fund to start being depleted a lot earlier than planned. That is what has caused the insolvency date to push to the left so dramatically ever since Millennials started entering their working years. If Gen Z (which is starting work earlier than Millennials did) and Millennials would have come into the workforce at similar ages like everyone before them, the SS trust fund would still be increasing. I sure like to blame Boomers whenever I can, because they are awful. But this one is not on them or Gen X. They and the rest of us are living a lot less than previously thought and computed, and this has already saved SS hundreds of billions if not trillions of dollars in reneged benefits. The longer your money is in an interest bearing account the more return you make. This is how the SS trust fund works. Gen Z and Millennials should have put a lot more money in the trust fund by now which would now be paying large sums of interest, and that interest would go to paying current beneficiaries instead of SS having to draw down the principal. SS actuaries never imagined we would have a generation with such a large percentage of members that would spend their teens, all of their twenties, and even some of their thirties not working. And we got two, back to back, though Gen Z is trying to turn the ship around.

@jeffbalog5161 2 месяца назад

No more deceased transfer of benefits? Many women are stay at home moms an d put their husbands thru school, they had very little income I don’t agree with your opinion, this just attacks the family again not good.

@free-qe6wx 2 месяца назад

@@jeffbalog5161 You don't pay into SS, then you don't get benefits. Its pretty simple. This should have been implemented decades ago so that today it would already be in effect. Funny how you assume this is an "attack" on women.

@nicolasrumboll608 2 месяца назад

@@free-qe6wx millenials graduated college into 2008 mayhem... Of course the great financial crisis destroying the prospects of getting those jobs in the first place is a huge reason many millenials didn't start work until later in life. Crap jobs in the gig economy as well...

@ron9665 2 месяца назад

2:36 I think per your graphic you are looking at reducing it by 23% (or it being reduced to 77%)

@SuperAdRiCh7 2 месяца назад

I decided a bit ago to take my life into my own hands meaning I won't be relying on any social security at all. I'll be 41 this year and the next 12 years I will be maxing out my 401k til I hit 30 yrs at my job. Then I will wait it out til 60 to relax.

@leehaskins307 2 месяца назад

I think investing some of the balance of social security in the general S&P market for long term buckets is a good idea… since its shrinking rapidly tho it is probably to late.. should have done that long ago...

@richhands5269 2 месяца назад

My three favorite channels: Erin Talks Money, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

@Sashas594 2 месяца назад

SS will exist but it will be paid out in minimal amount as means of survival to the poor only. People who relatively well off or with assets will not see SS benefits at all. No one knows what the limits of poverty will be to qualify for SS in the future but I think this will be the culprit.

@kylen6430 2 месяца назад

I’m a millennial. While I don’t think I won’t receive SS, I am not counting on it. I am saving for retirement as if I won’t receive SS, so anything I do get will just be a bonus

@mattbleiler7294 2 месяца назад

41 year old millenial. I’m not counting on it.

@SquidInkNoodle 2 месяца назад

Same

@nmh2800 2 месяца назад

Same

@johnurban7333 2 месяца назад

Funny, I said the same thing 30 years ago

@bseneca1997 2 месяца назад

You’ll get something, but possibly reduced, age eligibility pushed out, percentages reduced for claiming it early, etc. Definitely save and invest like you won’t get it and and amount will be a pleasant surprise.

@mtb5782 2 месяца назад

It will be there. Stay off of TikTok.

@KaironQD 2 месяца назад

Hmmm does "individualization" as seen in the Australia system you mention "work" for the working class in practice? Is it a progressive system? Social Security as a program to me seems intended as a progressive system so I'm curious if super annuation has the same effect, or if it's elements of individual responsibility to contribute your own savings leans towards benefitting mostly upper income individuals as seen in the US IRA and 401k retirement plans.

@AprilAdair-wl2vw 2 месяца назад

I am a Canadian (who has never worked or lived in the USA) so I could be wrong about this but from what I have read I will qualify for spousal SS when my husband (USA citizen) retires. That is one of the most broken things I think with the SS system, why are they paying people that didn’t pay in before their spouse passes away.

@jeffbalog5161 2 месяца назад

Many women are stay at home moms and they take care of family.

@bryanwhitton1784 2 месяца назад

@@jeffbalog5161 Correct and they still do it.

@angiepatterson6338 Месяц назад

I do not think the system will go broke. The will raise taxes, lower benefits, and above all else raise the beginning retirement age.

@brianmorg 2 месяца назад

I’ve never included social security payments in my retirement planning as a Gen X’er. If it’s there, great…it’s a bonus.

@snakeonia7542 2 месяца назад

Going to be a pretty decent bonus. Enjoy

@brianmorg 2 месяца назад

@@snakeonia7542 That would be nice, but it will never be part of my plan. I can’t really call it “my plan” if I’m basing it on money over which I have absolutely no control.

@funguy1086 2 месяца назад

37 here. I think it will still be there, but it will be anywhere from 50% to 75% of what it is today. The big shift in age demographics will make it tough.

@user-rs2bi2mf3r 2 месяца назад

This is my opinion too. They'll increase the full retirement age, cut benefits significantly, and possibly raise the % withheld from current workers.

@bryanwhitton1784 2 месяца назад

Please see the post from NEWHAMPSHIREGUY above. The financial solution for SS for everyone currently living is easy. The issues are purely political.

@darnellmurrell8173 2 месяца назад

Turning 40 and this year and was not counting on it since 2007. Glad my manager scared straight myself to put money away towards my 403b at the time. If, by chance, it's there by the time I retire, it'll just be gravy on top

@bryanwhitton1784 2 месяца назад

Actually I would suggest that it would be the foundation. Live as much as possible on SS then use what you have saved for the rest that you need. It will be there no matter what the market is doing.

@jeffbalog5161 2 месяца назад

The problem is there’s not enough workers to retirees ratio, men do not want to marry, less people having kids, or they are choosing small families without people the system fails, thank goodness our borders are open and we have young coming into our country. When we have enough the borders will close.

@j10001 2 месяца назад

The data you presented confirms we should not plan on it. No one age 60 or below should rely on social security if at all possible.

@Coolguyjason 2 месяца назад

Since a young age, I have assumed most people will die before getting any Social security. I know overall life expectancy is high, but people who can barely afford housing and food, will not get much medical attention. Once people retire in non pension systems, they won't have the collective bargain healthcare current retirees have. Medicare does not really incentivise people to seek early help, and for most currently on employer plans, we already pay high fees to go. So, I think many millenials like myself assume we will be dead by 67-70, due to healthcare issues, than collecting social security. Also, will employers have to pay by the robot in future? Already we have lots of automation in work places reducing staff, so logically taxes towards social security will drastically drop, as more people are underemployed or unemployed.

@hownwen 2 месяца назад

I'm finding conflicting info. So, if I worked the 35 yrs. Needed. I stop working at 60 but don't collect SS until 65. Will my SS go down each year I'm not working? Thank you!

@splitzgymnastics2009 2 месяца назад

No. SS takes into account your top 35 years of work. If you stop working at 60, and already have your 35 years of contributions in, your SS amount will not change. Except it will increase yearly with inflation.

@Evan_Horvath 2 месяца назад

I do not factor Social Security into my retirement. Whatever I end up getting is just extra. I max my 401(k), Roth IRA, and HSA every year. It'd be nice if I could opt out of SS, and get that 6.2% from my employer added to my 401(k) match.

@Gmac_Greg_M 2 месяца назад

SS needs to be phased out entirely. If everybody was forced to put what they pay in SS to a 401k based on the SP500 instead throughout their life they would be ALOT better off

@TheThreatenedSwan 2 месяца назад

A privatized system where they are indeed normally invested would be better

@fredswartley9778 2 месяца назад

I don't think social security will ever run out completely. The benefits will just be reduced, as you said. But regardless of the future, it is important to save and invest wisely and not rely too much on the government. There are more self employed people today than ever before and it's their responsibility to save for their own retirement.

@donh8833 2 месяца назад

They are likely right. And gen x will get 85%. But it will only go down from there. Only way that ss can continue is with gdp and population growth. Neither can survive forever. So eventually when it reaches its 0 first derivative (pay in to pay out slope) benefits start getting reduced.

@FranciszekPawal 2 месяца назад

Wife and I are 33 with about $800k in investments, excluding home equity and rainy day funds. I've always strived to stay on top of my finances, hoping that being disciplined in my 20s would allow me/us to have more breathing room in our 40s+ but it gets hectic, should we get a partner?

@BP_PE90 2 месяца назад

The wage cap should be eliminated, and some provisions to tax employees who are paid through company stock. I think currently RSUs get a step up in basis at the end of the vesting period, and we could probably tax the capital gain for Social Security.

@phuongha3113 2 месяца назад

High consumers spending is what drive America economy. Teaching them about responsible spending would tank the economy. Just my theory...

@lulucly 2 месяца назад

why not offer retirement education thru the Jr. Colleges as well as at the high school level?

@jacobside2656 2 месяца назад

We can't let them raise the retirement age. We need to remove the cap. The higher tax isn't going to keep people from going for those jobs.

@user-bz1nd5vd2y 2 месяца назад

I do agree that there may be some money in the end for all of us, but let’s look at the real issue here one of them anyways. The max right now stands to get full benefits is 67 years old. You can start at 62 to get Social Security benefits partial. Men on the average live to be 73 to 74 years old so the majority of those who do get Social Security benefits majority of time is only women when men only lived to enjoy some full retirement from the government only seven years based on statistics. What’s the point of us even paying money into the system if we don’t even get to enjoy our retirement and live here long enough to actually enjoy it. The system needs to be more realistic, simply the COL calculations and the average lifespan per sex. Basically the whole system needs to be redone. The current one is not sustainable we need one more like Norway pension fund. It would also need to reduce the max age to gain full SS benefits to 60 and start as early as 55 instead.

@thetapheonix 2 месяца назад

Inflation is destroying whatever minuscule social security benefits you get or would get anyway. So in practice it’s already cut. Might as well promise to pay in bottle caps.

@tsx0013 2 месяца назад

What about a 401k?

@LisaThinksALot 2 месяца назад

I think the big difference these days is that there's talk from politicians about cutting social security and generally "pulling up the ladder" behind Baby Boomers

@lberhold 2 месяца назад

Retirement shouldn't be an entitlement. You need to earn retirement, not get it handed to you. People aren't having enough children, so SS should be tied to how many children you raised, such that you'd need to have claimed them for at least 15 years on your tax returns.

@user-up6qp9fv9w 2 месяца назад

You think people who have been working for 50 years and paying into social security have not earned retirement , should not have anything to with how many kids you have.

@martypoll 2 месяца назад

Social Security isn’t just handed to you. You have to be in the workforce and pay SS taxes for 40 quarters. The lack of children is a real problem but making children a requirement for people past menopause is a bit too late to address the immediate problem.

@chemquests 2 месяца назад

If you build your plan without the assumption of social security, then getting it will be bonus.

@snakeonia7542 2 месяца назад

Donut hole, slight increase in rate for everyone but self employed seems sensible.

@nicolasrumboll608 2 месяца назад

Good video. You write 77 percent reduction in minute 2:42. You mean 23 percent reduction. 100 minus 77.

@ShatteredF1re7733 2 месяца назад

If only social security was the only tax I paid for nothing in return.

@AnthonyAlvarado78 2 месяца назад

The system is pretty broken. I would rather everyone just keep their money and manage it themselves.

@sabrinab9991 2 месяца назад

HOT BUTTON ISSUE FOR ME! SORRY! Raising the retirement age is non-sense. That’s not fair to the ones of us who still have forever already before we can get it (47 yo here). I don’t like working, I don’t feel called to it (it was the only thing I felt I had some knowledge of at the time of choosing). I feel called to be a housewife, but it’s not going to happen. I’m too old and too long at doing my current job to find something new (I’m in my 25th year). No where near enough to retire. I think the Social Security System needs to be done away with or let it be optional. I want to not have to rely on it or the government for that fact when I finally can retire and I could do so much better investing it myself. I’m ready to do what I want to do without time constraints or answering to a boss.

@CrayonEater94 2 месяца назад

What if the government invested SS just like a 401k?

@clintperry799 Месяц назад

Cut off anyone who has not paid in ! So many women have keeeeds just to get a check . This must stop !

@ryangagnon370 2 месяца назад

Check out what Brad Gerstner is proposing. $1k into the S&P 500 for every newborn, companies can also contribute to their employee’s children’s futures.

@thomasreto2997 2 месяца назад

Fantastic job of our government to schedule this 2 years before my retirement.

@snakeonia7542 2 месяца назад

It most likely won’t affect you then.

@pixperformance21 2 месяца назад

Nobody wants to go to the Social Security website where they explain what they're going to do about it.

@gordonfreemanlaw 2 месяца назад

Medicare and SS will be changed by the time I get there but I doubt it will be gone 100%. Retirement age and benefits will be altered though so it can survive.

@NeoSoulCrew 2 месяца назад

The stock market doesn't fail until it does.

@scotth4613 2 месяца назад

Dang Erin 😍🤌🤌

@jimmyt7194 2 месяца назад

I wish they would just do away with it. Let me keep my 7%.

@bryanwhitton1784 2 месяца назад

That would be all fine and good but the benefit to the country would be minimal. What good would it do for the people of the USA if jimmyt7194 was doing ok in his retirement but 1/2 of the retired people, many through no fault of their own, are living on the streets for scraps and handouts. This ending was the reason for SS in the first place. I am willing to contribute to the whole for a more financially viable population. The elderly and retired contribute a great deal to the financial state of the country.

@ExcitedIsoscelesTriangle-ot4rk 2 месяца назад

People are already losing money ... the COLA is far behind the inflation rate ... as inflation continues to go up, your purchasing power continues to go down even if your are getting more dollars. So, for all intents and purposes, most people won't get much social security even if they're bringing in a couple thousand a year.

@LiamRappaport 2 месяца назад

Congress should consider taxing larger generations more to cover their future payouts so we don't get a situation like we have now. Maybe automatically changing the tax rate based on the number of births in your birth year.